The modern workplace is constantly evolving, and as a result, leaders need to develop new skills to thrive in this dynamic environment. While traditional leadership skills such as strategic planning and emotional intelligence (EQ) remain essential, today’s leaders require additional competencies to succeed in the digital age. According to Deloitte’s 2023 Global Human Capital Trends report, only 23% of organizations feel that their leaders have the skills necessary to lead in today’s context. Similarly, the 2023 Workplace Learning Report by LinkedIn Learning found that skill sets for one in four jobs have changed since 2015. Now more than ever, leaders need to guide their teams through the changing dynamics of the workplace.
The Need for a New Skill Set
As more companies embrace remote work and hybrid work models, leaders must be adept at using digital leadership methods to facilitate effective collaboration among team members. This means not only having digital presentation skills, but also modern leadership and communication acumen. This is the sum of social, emotional and cognitive abilities that enable leaders to face the challenges of digital work and life, adapt to its demands and thrive. In other words, it’s the new set of skills that leaders need to succeed in a fast-paced environment while making solid, data-based decisions.
Future-forward Leadership Skills
There are five key skills that leaders can develop to harness and improve their modern leadership:
1. Using technology to communicate and collaborate virtually: Leaders must be able to select the right communication channel and use tools to communicate and collaborate efficiently and effectively. This means using technology effectively to build human connections despite the limitations of any platform. This also means going beyond mastering their current technology to communicate, and includes thoughtful consideration of all digital and conventional communication channels (e.g., from Slack to informal water cooler talk) and the digital empathy to derive unstated feelings from their team members. The latter could be from picking up on cues in their Microsoft Teams chat word choices to noticing body language and tone in synchronous meetings. A modern leader needs to evolve these skills to adapt.
2. Engaging and developing individuals and teams in all locations: Leaders must achieve equity and inclusion for all workers, whether remote, face to face or in combination. It is essential to foster a hybrid work environment that drives employees retention and avoids proximity bias. This means creating an inclusive culture that transcends physical and digital boundaries, ensuring that every worker feels valued and heard.
Leaders who possess a heightened level of self-awareness and awareness of others are better equipped to navigate complex interpersonal dynamics, build strong relationships with team members, and foster a positive and inclusive workplace culture. Authentic leadership that focuses on mental well-being is essential, as leaders who prioritize their own well-being and that of their team members can help create a more positive and productive work environment. It’s also important for leaders to be attuned to employees’ motivations and to connect with them, both in person and virtually. By developing and demonstrating EQ, leaders can build trust with their team members and create an environment in which everyone can thrive.
3. Leveraging technology to drive continuous improvement and innovation: Leaders must understand digital trends and identify use cases to evolve business models, operating models, client experiences and employee experiences. These are essential for continuous improvement and innovation.
By staying abreast of digital advancements and identifying new use cases for technology, leaders can evolve their operating frameworks and client experiences to remain competitive in the marketplace. For example, this could mean leveraging artificial intelligence (AI) to influence decision-making, or deriving process automation that benefits the team. Adopting new frameworks, born out of digital brainstorming, will drive lasting innovation.
4. Working in agile ways: Leaders can adopt processes that keep pace with the changing work environment. Agile methodologies prioritize speed and efficiency over perfection, allowing teams to quickly adapt to changing market conditions and customer needs.
To lead in agile ways, leaders must be willing to embrace concepts like minimum viable products, iteration and “fast failure.” They must also create a culture that values experimentation and continuous improvement and empower their teams to make decisions and take risks. By leading their teams to use agile methodologies, leaders can foster a culture of innovation and agility that will help their organizations stay ahead of the curve.
5. Using advanced analytics to make better decisions: Leaders can move from using data to describe what happened — and why it happened — to being forward-looking and identifying what will likely happen and what they should do about it. By analyzing data to identify trends and anticipate future outcomes, leaders can make more informed and strategic decisions for their organizations.
First Steps for Modern Leadership
To build the skills noted above, learning leaders can start by building awareness around them. Then, they can then measure existing capabilities using tools like 360-degree assessments. Based on those results, they can prioritize critical areas for development and identify traditional solutions (like training). Or they could consider less traditional solutions, like reverse mentoring, peer coaching groups, corporate mastermind groups, or targeted collaboration and learning from individuals in other organizations.
In conclusion, the modern workplace demands a new set of leadership skills. It’s not enough to use technology in the workplace for operational efficiency and communication. Leaders who can truly leverage technology, create an inclusive culture, drive innovation, work in agile ways and use data to make better decisions will be well-positioned to succeed in today’s fast-paced business environment.
By prioritizing these competencies and investing in training and development, organizations can equip their leaders with the skills they need to thrive in the digital age.
